YPF, the state-owned oil and gas enterprise, divested its interest in Metrogas, the leading natural gas distribution entity in Argentina, to Edenor, an electricity distributor overseen by businessmen José Luis Manzano, Daniel Vila, and Mauricio Filiberti. The decision indicates that YPF will divest from Metrogas as it reallocates its resources to prioritise oil and gas extraction in the Vaca Muerta shale formation located in Neuquén province. Metrogas was established in 1992 as a result of the privatisation of vital public services in Argentina. It distributes natural gas to over 2 million households throughout Buenos Aires City and 11 surrounding districts, accounting for approximately 19% of Argentina’s natural gas market.
Edenor, Argentina’s largest electricity distribution company, will also acquire YPF’s stake in large-scale natural gas supplier Metroenergía, in a transaction valued at US$780 million. YPF held a 70% stake in Metrogas’ share capital and a 5% interest in Metroenergía. YPF’s board of directors approved the transaction on Monday after evaluating multiple offers, as reported by Herald’s sister publication Ambito’s Energy Report. The transfer will not be effective immediately. Edenor must first fulfilll a series of requirements, which include securing regulatory approvals and adhering to performance guarantees.
Manzano, a former minister and lawmaker, along with Vila and Filiberti, has been the owner of Edenor since 2020. They also possess multiple enterprises engaged in delivering essential services, such as Edemsa, the electricity distributor for Mendoza province, and Transclor, which provides chlorine to the state-operated water company AySA. They also exert control over oil companies Raízen, which operates Shell gas stations in Argentina, and Andina PLC, in addition to media company Grupo América. As noted in the Energy Report, the transaction aligns with YPF’s strategy to enhance its asset portfolio while concentrating its investments on the development of Vaca Muerta.
YPF seeks to position itself as a leading producer in the global shale market. The sale represents a further advancement in its objective of establishing itself as a global energy enterprise. YPF is divesting non-core assets and reallocating capital to projects deemed more strategically significant. “The decision follows other recent moves by YPF to streamline its asset portfolio and strengthen its focus on unconventional oil and gas,” Energy Report wrote. “The company’s primary goals are to increase oil and gas production in Vaca Muerta, improve profitability and expand its export platform.”
